Inflation slowed in France to 2.3% year-on-year in March, after 3.0% in February, according to provisional data communicated on Friday by INSEE, which cites a “slowing down” in price increases. food, services, tobacco, energy and manufactured products. “Over one year, according to the provisional estimate made at the end of the month, consumer prices would increase by 2.3% in March 2024, after 3.0% in February,” indicated the National Institute of Statistics and economic studies in a press release.
This “decline in inflation” would be “due to the slowdown over one year in the prices of food (1.7% in March after 3.6% in February), services, energy and manufactured products. . Tobacco prices also slowed down particularly in March year-on-year, standing at 10.7% after 18.7% in February. Furthermore, price increases also slowed over one month, to 0.2% in March compared to 0.9% in February. “This slowdown is due to the slight drop in energy prices, particularly gas and petroleum products,” notes INSEE.
Conversely, “the prices of manufactured products would accelerate” in March over one month, “due to the seasonal increase in clothing prices after the winter sales,” indicates the Institute. The prices of food and services, on the other hand, would be “stable over one month”.
Inflation is an indicator closely scrutinized by investors, because it greatly influences the monetary policy of central banks, which seek to bring it below 2% through their policies of increasing their rates, now stabilized. Investors are now watching for any sign that could trigger the first rate cuts, promised in the spring. A benchmark indicator at European level, the harmonized consumer price index (HICP) increased by 2.4% year-on-year in March, after an increase of 3.2% in February.
